New Media Management Selects Wirecard

Wirecard has been awarded a contract by neu.de,
a subsidiary of New Media Management, for the handling of payments
on its international Internet portal. The project for handling credit card and direct debit payments has been implemented for the www.NEU.de community, which is available in more than 5 languages and 100 countries. NEU.de has more than 3.8 million members and is one of the largest Internet communities in Europe. The Wirecard software platform is being used by more than 6,000 enterprises worldwide.

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Pay Linx Uses CardWizard for Prepaid Government Cards

Pay Linx is now using Dynamic Card Solutions’ “CardWizard” technology to provide government institutions with the ability to instantly issue pre-paid debit cards. “CardWizard” provides instant issue software along with a user-friendly administration component that allows for full reporting, card inventory management and security. Additionally, DCS enables card owners to select their own PIN,
eliminating delays and allowing for immediate use. DCS is also developing new software to meet the demands of Pay Linx costumers for a user-selected paper-based pinning solution. The new product should be available in December.

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TSYS Card Tech Names a New Manager

TSYS Card Tech has promoted Michalis Michaelides as
Business Development Manager. Michaelides will be responsible for managing the expansion of TSYS Card Tech’s existing client
portfolio, developing new business opportunities and strengthening business alliances in Central and Southern Europe, India and Pakistan.
TSYS acquired Card Tech Limited in July and renamed the it as TSYS Card Tech. Michaelides worked for CTL for 11 years. (CFI Library 7/11/06)

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Caja de Gipuzkoa y San Sebastian Adds NCR ATMs

Caja de Gipuzkoa y San Sebastian has signed a deal with
NCR to incorporate more than 60 new “Personas 76 M Series” ATMs in its
network. The ATMs have image-based deposit functionality. The units
integrate NCR’s “No Envelope” deposit technology that recognizes notes
inserted directly into the ATM without a deposit envelope, and offers a
printed proof of the transaction on the customer’s receipt.

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BofA’s Card Profits Triple Year on Year

Bank of America reported that Card Services had revenue of $5.33 billion, an increase of 137% compared to the third quarter of last year and net income more than tripled to $1.48 billion. Managed card loans at the end of the third quarter increased 7% year-on-year to $194.9 billion. Third quarter credit card services charge-offs were 4.11%, compared to 3.59% in the prior quarter and 4.76% one year ago. The managed 30+ day delinquency rose to 4.90%, compared to 4.56% in the second quarter and 4.49% for 3Q/05. BofA also reported that its merchant acquiring business handled $97.0 billion in processing volume during the third quarter from total transactions of 2.1 billion. (BofA now includes consumer finance, international card operations and merchant services in reporting Card Services.) Debit card income increased 24% from the same quarter last year to $502 million and purchase volume grew 19% to a record $42.86 billion. For complete details on Bank of America’s 3Q/06 performance, visit CardData ([www.carddata.com][1]).

BOFA/MBNA EOP CARD LOAN HISTORICAL
3Q/05: $182.6 billion
4Q/05: $189.3 billion
1Q/06: $184.9 billion
2Q/06: $190.1 billion
3Q/06: $194.9 billion
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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AUG DEBT

Credit card debt soared to a new record, slightly topping A$37.0 billion in August. Credit card volume hit its second high for the year after declining for two consecutive months. Card volume hit A$16.5 billion during August, compared to A$15.4 billion in July. During the past twelve months, credit card debt has increased 16% in Australia. For August, credit card balances increased A$300 million from the previous month. One-year ago credit card debt stood at A$31.8 billion. Gross dollar volume on credit card and charge cards was A$15.3 billion one-year ago. Year-on-year credit card volume has increased 8% in Australia. Card credit limits reached A$99.8 billion at the end of August, compared to A$88.4 billion for August 2005. There are currently 13.1 million credit card and charge card accounts in Australia, compared to 12.2 million one-year ago.

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Discover Launches a Cashback Bonus Promo

Discover has launched the “Make the Holidays More Entertaining” “Get More” program offering a 5% “Cashback Bonus” for purchases made at restaurants, movie theatres and movie rental stores, and at Amazon.com, Borders, and other participating retailers through the end of the year. The Get More program is free to Discover Cardmembers. It offers the opportunity to earn 5% Cashback Bonus all year long in over 15 different categories that align with consumers’ top seasonal shopping needs. Just as their shopping needs change, so do the categories – four times a year – so Cardmembers earn the most cash based on where they want to shop and use credit. Discover Financial Services LLC, a business unit of Morgan Stanley (NYSE: MS), operates the Discover Card with more than 50 million Cardmembers, and the Discover Network with more than 4 million merchant and cash access locations.

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Cash Systems Signs a Deal with TSYS

Cash Systems has signed a deal with TSYS Acquiring Solutions to enable the Company to begin processing it own credit card transactions. TSYS Acquiring Solutions is the preeminent supplier of acquiring solutions, related systems and integrated support services to the acquiring industry and its customers. Cash Systems, Inc., located in Las Vegas, with additional offices in San Diego and Minneapolis, is a provider of cash-access and related services to the retail and gaming industries.

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Obopay Goes Live on Amp’d Mobile Devices

Obopay has delivered the first operator-supported mobile payments service in the USA. The service went live on all Amp’d Mobile devices this week. As part of the service, Amp’d Mobile device users will be able to send money to any mobile phone number and instantly receive money from any Obopay user. The service also comes with an Obopay companion prepaid debit MasterCard. Amp’d Mobile is the first integrated mobile entertainment company for youth, young professionals and early adopters, and the only third generation (3G) carrier in the U.S. specifically targeting that demographic. Obopay, found last year, has a management team comprised of former executives from VISA, Microsoft, Yahoo, Expedia, AT&T Wireless, Western Union, First Data, Norwest Bank and Chordiant Software.

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Citi Credit Card Profits Top $1.0 Billion

Citigroup reported that 3Q/06 profits for its U.S. Cards unit rose 36% year-on-year to $1085 million driven by growth in non-interest revenue, lower operating expenses, and a significant decline in credit costs. Revenues increased 2% to $3.45 billion, driven by a 14% increase in non-interest revenue, which was partially offset by lower net interest revenue due to net interest margin compression. Bank credit card outstandings for the U.S. were up 1% at $110.3 billion compared to one-year ago. But, private label card outstandings increased 19% to $30.5 billion. Purchase volume for the third quarter rose 9% to $77.0 billion. Citi’s account base at the end of the third quarter rose 27% to 151.1 million accounts. Citi’s charge-offs for bankcard and private label cards rose to 4.26% compared to 4.11% in the prior quarter, and 5.66% one-year ago. Overall delinquency (90+ days) rose slightly from 1.58% for 2Q/06 to 1.60% for the third quarter 2006. For complete details on Citigroup’s 3Q/06 performance, visit CardData ([www.carddata.com][1]).

CITIGROUP
U.S. Credit Card Net Income
3Q/05: $ 797 million
4Q/05: $ 444 million
1Q/06: $ 926 million
2Q/06: $ 878 million
3Q/06: $1085 million
Source: CardData (www.carddata.com

[1]: http://www.carddata.com

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95% of Adults Purchased/Received Gift Cards

A new survey has found that 95% of adult survey respondents stated that they had either received or purchased a gift card, a 24% gain over the prior year. Comdata’s fourth annual survey of adult gift card purchasers also found 27% of adult consumers say that they have purchased gift cards over the Internet. Additionally, 22% of adult consumers say that they have purchased gift cards at gift card malls. More than three in ten adult consumers report purchasing gift cards for themselves this year which is an increase from the 12% of shoppers who said they had bought gift cards for themselves in past surveys. Adult purchasers load each gift card they purchase with an average of $46 — up 21% versus the average load in 2003. About 24% of consumers received gifts cards from employers as a bonus, incentive or reward.

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ADS’ Third Quarter Net Income Soars 36%

Alliance Data Systems reported that third-quarter revenue increased 32% to a record $506.6 million and net income rose 36% to $48.8 million, compared to the year ago quarter. Transaction Services segment revenue increased 9% to $195.6 million. The vast majority of this segment consists of two growth engines, private label and utility services. Credit Services segment revenue increased 32% in the third quarter to $181.4 million. Credit sales increased 17% year-on-year, the largest percentage increase in over two and a half years. Marketing Services segment revenue increased 50% to $218.6 million. Results were driven by stronger-than-expected performance in the “AIR MILES” reward program. ADS is now projecting 2007 revenue of at least $2.1 billion and an adjusted EBITDA of at least $575.0 million. For complete details on ADS’ third quarter performance, visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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